Bharti Airtel’s decision to discontinue several lower-priced prepaid plans could benefit rival Vodafone Idea (Vi) more than Airtel itself, according to analysts. Airtel has reportedly withdrawn plans priced at ₹299, ₹319, ₹579, ₹619 and ₹649, prompting some customers to shift to higher-priced offerings. JM Financial estimates that if around 10% of Airtel subscribers upgrade to plans costing ₹50 more, the company’s average revenue per user (ARPU) could rise by ₹5–6, or roughly 2%, from ₹264 in Q1 FY27. However, analysts believe Vodafone Idea could see a larger relative benefit if it follows a similar strategy. A comparable tariff restructuring could increase Vi’s ARPU by ₹7–8, or around 4%, from ₹177, potentially improving its FY27 EBITDA by about 2% and valuation by 3%, according to JM Financial. IIFL Capital said Vi could either mirror Airtel’s move, use the opportunity to attract subscribers and gain market share, or adopt different pricing strategies across individual telecom circles. JM Financial estimates that around 128 million Airtel users, or 35% of its subscriber base, are on 1 GB or 1.5 GB daily data plans. Airtel has been gradually encouraging customers to move towards higher-value prepaid and postpaid plans while avoiding headline tariff hikes. Vodafone Idea and Reliance Jio have not yet announced similar changes, leaving Vi with an opportunity to decide how best to respond to Airtel’s latest strategy.
